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Punch Industry Co., Ltd. Reports Q2 Financial Results for FY2026

Punch Industry Co., Ltd., headquartered in Shinagawa, Tokyo, has unveiled its financial results for the second quarter of the fiscal year ending March 2026. The company specializes in manufacturing and selling precision mold components and factory automation equipment. The latest details were disclosed during a financial results meeting held on November 21, 2025.

Key Highlights of Q2 FY2026

The company has successfully maintained a year-on-year increase in both revenue and profits while issuing upward revisions for its full-year consolidated performance and dividend forecasts:

• - Sales Performance: The consolidated sales reached 20,564 million yen, marking a 2.9% increase from the previous year:

- Domestic sales in Japan amounted to 5,332 million yen (down 7.2% year-on-year), primarily due to the impact of the automotive sector's downturn.
- Conversely, the company reported strong order volume growth in China, particularly in the automotive sector, contributing to a total sales figure of 12,236 million yen (up 7.6%).
- The Southeast Asian market recorded figures at 1,010 million yen (up 6.3%), while other regions, including Europe and America, achieved 1,985 million yen (up 3.2%).

• - Profit Insights:

- Operating profit stood at 989 million yen, a remarkable 42.8% increase year-on-year.
- Ordinary profit was 1,035 million yen, witnessing a significant rise of 70.7%, while the net profit attributable to shareholders reached 559 million yen, marking an increase of 163.4% from the previous year.

Despite ongoing challenges such as rising raw material costs and stable energy prices affecting Japan's supply chain, the growth in sales in China contributed positively to the improvement in the cost ratio. The company has also managed to control SG&A expenses effectively both in Japan and China, leading to increased profits.

As a result, Punch Industry has revised its full-year consolidated forecasts for revenue and dividends for the second time, with the most recent adjustments announced in August 2025.

Shareholder Returns Policy

Since January 2023, the company has established a shareholder return policy aiming for a consolidated dividend payout ratio of over 30% and a shareholder equity dividend rate (DOE) of 3% or higher. This ensures consistent and stable profit distribution linked to consolidated performance, taking into account financial health and capital needs.

Details of the November 21 Financial Meeting

During the financial briefing aimed at institutional investors, CEO Tetsuji Morikubo, alongside Chief Financial Officer Tomoki Katamura, discussed the quarterly financial summary and provided insights into their mid-term management plan,